Chipotle Mexican Grill, Inc. Class Action Lawsuit - CMG
Case Summary
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The Chipotle class action lawsuit seeks to represent purchasers or acquirers of Chipotle Mexican Grill, Inc. (NYSE: CMG) publicly traded common stock and those who purchased Chipotle call options or sold put options between February 8, 2024 and October 29, 2024, inclusive (the “Class Period”). Captioned Stradford v. Chipotle Mexican Grill, Inc., No. 24-cv-02459 (C.D. Cal.), the Chipotle class action lawsuit charges Chipotle and certain of Chipotle’s top current and former executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Chipotle class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Chipotle class action lawsuit must be filed with the court no later than January 10, 2025.
CASE ALLEGATIONS: Chipotle owns and operates Chipotle Mexican Grill restaurants that sell food and beverages and provides delivery and related services through its app and website.
The Chipotle class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Chipotle’s portion sizes were inconsistent and left many customers dissatisfied with Chipotle’s offerings; and (ii) to address the issue and retain customer loyalty, Chipotle would have to ensure more generous portion sizes, which would increase cost of sales.
The Chipotle class action lawsuit further alleges that on July 24, 2024, defendant Brian Niccol (former Chipotle CEO) acknowledged that portion inconsistency was an issue at Chipotle and that it had caused customers to feel justifiably unhappy with Chipotle. Niccol further revealed that Chipotle would have higher cost of sales in the third quarter of 2024, partially as a result of giving customers more generous portions, according to the complaint. The Chipotle class action lawsuit alleges that on this news, the price of Chipotle stock fell.
Then, on October 29, 2024, the Chipotle class action lawsuit further alleges that during Chipotle’s third quarter of 2024 earnings call, interim CEO Scott Boatwright stated that “[c]ost of sales in the quarter were 30.6%, an increase of about 90 basis points from last year,” partially driven by “higher usage as we focused on ensuring consistent and generous portions.” On this news, the price of Chipotle stock fell nearly 8%, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Chipotle publicly traded common stock or bought calls or sold puts during the Class Period to seek appointment as lead plaintiff in the Chipotle class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Chipotle class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Chipotle class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Chipotle class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.